How easy to use one property as part deposit on another without selling it ?

property.advert

Say you have one property, mortgage free, worth £150k and you want to buy another property for £500k with a £400k mortgage ?

Of course you could sell the first one but you don't want to.

How easy is it to get a lender to take a first charge over both properties (if required) and instead of having a 80% LTV (£400k on £500k) you would have a near 60% LTV (£150k plus £100k cash and a £400k mortgage on a £500k house).

Seems easy but not totally straightforward. Is it ?

Senior_Paper_Monitor

Doesn't work that way. Mortages are on individual properties by their definition.

The whole plan uite likely do-able depending upon overall circumstances - but not structured as you envisage.

Much depends on what you want to do with the individual properties.

Sounds like a brokers/advisers job to me.

MF2015

Sounds similar to what we want to do, I had a quick chat to an advisor last week and the only thing possible was a remortgage on property no.1 to pay the deposit on property no.2.

Just need to have our offer accepted then sort the cash side of things, though there is a lot of interest in the house, 27 other groups looked at it in 2 hours today. :eek:

property.advert

MF2015 wrote: »

Sounds similar to what we want to do, I had a quick chat to an advisor last week and the only thing possible was a remortgage on property no.1 to pay the deposit on property no.2.

Just need to have our offer accepted then sort the cash side of things, though there is a lot of interest in the house, 27 other groups looked at it in 2 hours today. :eek:

Not sure if I agree with your advisor. Rarely is the simple solution the only way; the lazy way yes but not the only way.

This was certainly possible years ago and you'd think it should be possible now but I guess we need a lender who can think outside the box.

MF2015

property.advert wrote: »

Not sure if I agree with your advisor. Rarely is the simple solution the only way; the lazy way yes but not the only way.

This was certainly possible years ago and you'd think it should be possible now but I guess we need a lender who can think outside the box.

So what are you sudgesting?

I don't see how it's a lazy way taking equity from one property to use on another one. The only other way I can see is to sell property no.1 and put it in to property no.2 but as we have property no.1 on the market and it hasn't gone yet remortgaging it is the only way I can see.

kingstreet

Sadly, the days of the cross-charge are long gone. IIRC the last lender offering it was Staffordshire Building Society, although I could be corrected if anyone knows of others.